Key Takeaways
- • Peter Thiel and Founders Fund completely exited their 7.5% stake in ETHZilla (NASDAQ: ETZH) as of December 31, 2025, according to SEC Form 13G/A filings dated February 17, 2026, reversing an August 2025 position that was viewed as institutional validation of corporate Ethereum treasury strategies.
- • ETHZilla stock declined 5% in after-hours trading following the disclosure and has fallen 28% year-to-date, reflecting broader market skepticism toward Ethereum treasury corporate models despite the firm holding 69,802 ETH worth approximately $140 million (among top 10 public corporate Ethereum holders).
- • Thiel's exit marks a strategic reversal from his initial August investment thesis positioning Ethereum accumulation as analogous to Michael Saylor's MicroStrategy (MSTR) Bitcoin strategy, suggesting diminished confidence in corporate digital asset treasury sustainability.
- • Founders Fund maintains a separate 9%+ stake in BitMine Immersion, currently the largest public Ethereum treasury firm, indicating selective portfolio rebalancing rather than complete crypto treasury divestment.
- • ETHZilla has undergone multiple pivots—from 180 Life Sciences Corp (biotech) in mid-2024 to Ethereum treasury focus, and most recently to ETHZilla Aerospace offering tokenized equity in leased jet engines—signaling underlying business model instability.
Summary
Peter Thiel and his Founders Fund have fully divested from ETHZilla, the Ethereum-focused treasury firm, according to SEC filings dated February 17, 2026. The billionaire venture capitalist reported zero beneficial ownership as of December 31, 2025, liquidating the 7.5% stake he had disclosed acquiring in August 2025. The move represents a striking reversal from an investment widely interpreted at the time as institutional endorsement of corporate Ethereum accumulation strategies.
The exit timing is significant. When Thiel initially invested in August 2025, his backing was framed as validation of Ethereum treasury models, drawing parallels to Michael Saylor's popularization of corporate Bitcoin hoarding through MicroStrategy. The withdrawal just five months later signals diminished conviction in the thesis or underlying business fundamentals. ETHZilla's stock price reflects mounting investor concern, falling 28% since the start of 2026 and declining an additional 5% in after-hours trading following the disclosure.
ETHZilla itself has pursued an unstable growth trajectory. Originally incorporated as 180 Life Sciences Corp, a biotechnology company, it pivoted sharply to an Ethereum treasury strategy in mid-2024, accumulating over 100,000 ETH at its peak. The firm currently holds 69,802 ETH worth approximately $140 million, positioning it among the top 10 public corporate Ethereum holders. However, recent announcements of a new ETHZilla Aerospace division offering tokenized equity in leased jet engines suggest management is diversifying away from pure-play Ethereum accumulation, potentially indicating concerns about the sustainability of that core business model.
Notably, Thiel's exit from ETHZilla does not reflect complete abandonment of Ethereum treasury exposure. Founders Fund continues to hold over 9% of BitMine Immersion, currently the largest public Ethereum treasury firm. This continued position suggests portfolio rebalancing or specific concerns about ETHZilla's execution rather than wholesale skepticism toward the Ethereum corporate treasury sector. The divergence between Thiel's full exit from one major Ethereum treasury player and maintained significant exposure to a competitor warrants close monitoring of institutional sentiment toward digital asset treasury strategies.
The exit timing is significant. When Thiel initially invested in August 2025, his backing was framed as validation of Ethereum treasury models, drawing parallels to Michael Saylor's popularization of corporate Bitcoin hoarding through MicroStrategy. The withdrawal just five months later signals diminished conviction in the thesis or underlying business fundamentals. ETHZilla's stock price reflects mounting investor concern, falling 28% since the start of 2026 and declining an additional 5% in after-hours trading following the disclosure.
ETHZilla itself has pursued an unstable growth trajectory. Originally incorporated as 180 Life Sciences Corp, a biotechnology company, it pivoted sharply to an Ethereum treasury strategy in mid-2024, accumulating over 100,000 ETH at its peak. The firm currently holds 69,802 ETH worth approximately $140 million, positioning it among the top 10 public corporate Ethereum holders. However, recent announcements of a new ETHZilla Aerospace division offering tokenized equity in leased jet engines suggest management is diversifying away from pure-play Ethereum accumulation, potentially indicating concerns about the sustainability of that core business model.
Notably, Thiel's exit from ETHZilla does not reflect complete abandonment of Ethereum treasury exposure. Founders Fund continues to hold over 9% of BitMine Immersion, currently the largest public Ethereum treasury firm. This continued position suggests portfolio rebalancing or specific concerns about ETHZilla's execution rather than wholesale skepticism toward the Ethereum corporate treasury sector. The divergence between Thiel's full exit from one major Ethereum treasury player and maintained significant exposure to a competitor warrants close monitoring of institutional sentiment toward digital asset treasury strategies.
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